Super Stream Changes Our World
Wed 18th Jun, 2014
The ATO has recently implemented changes to employer super contributions that may affect your business. This new reform is known as SuperStream.
As an employer or potential employer you will need to ensure you are ready for the new changes which take effect from 1st July 2014.
What is SuperStream?
SuperStream is a government reform aimed at improving the efficiency of the superannuation system. Under SuperStream, employers must report super contributions on behalf of their employees by submitting data and payment details electronically in accordance with the SuperStream standard. All superannuation funds, including SMSFs, must receive contribution details electronically in accordance with this standard.
Employers with 20 or more employees will need to implement SuperStream by 1st July 2014.
Employers with less than 20 employees will need to implement SuperStream by 1st July 2015.
Employers with related party SMSF will not need to use SuperStream for related party employees.
Employers will need to:
- Send all super data electronically (such as the employee's details and the amount of super being paid)
- Make contribution payments electronically
- Link data and payments with a unique payment reference number
- Send data and payments on the same day.
Some options to help you meet the standard include:
- Upgrading your software so that it complies with the standard
- Engaging a service provider who can meet the standard on your behalf
- Getting advice from your super fund on how your business can meet the standard.
To help you understand the standard, the Australian Taxation Office (ATO) is sending important information about the standard to all employers with 20 or more employees. Watch out for this letter in the mail in the coming days.
Find out more about the Data and Payment Standard on the ATO website.
From 1 July 2015 all employers need to use this system, it is a better place to be, in our view we are a strong believer and proponent in business efficiency. Accordingly giving business the ability to comply with all their superannuation obligations quickly and easily and make payments from within their normal business software is a great step forward.
What does it mean?
- From within your payroll system you state which Superfund needs to be paid for which employees.
- Your system keeps track of the amounts
- When payments are due the software should create the payment instruction to the superannuation clearing house/s and send the money to that clearing house
- The superannuation clearing house takes the bulk instruction from you, separates the information (data) and the payment into the respective funds and sends it on i.e., push button SGC obligations met!
Who does it?
- The Medicare superannuation clearing house has been available for small business (less than 20 employees) for some time (See information and instructions here). This is now administered by the Department of Human Services/Medicare. This was a great first step towards this system but it is not an automatic process and in fact you need to duplicate your data by having all your relevant employee information in the Medicare system. This system continues for the time being.
- Xero have "auto super" which does the same process and uses clearing house "Clicksuper".